They are evaluating different ways to continue to support ad blocking. E.g. "unbraving" Brave Browser, or just implementing their adblock-rust.
They most likely won't support MV2, since it would get increasingly difficult with each update to Chromium.
https://github.com/ungoogled-software/ungoogled-chromium/issues/662
The only thing that I noticed that likely violates YT TOS is LTT mentioning alternate YT frontends, e.g. FreeTube, LibreTube, and Invidious.
This being enough for taking down a video, not just demonitizing, makes sense in the context of YT cracking down on third party frontends. How long until YT uses DRM?